Published at 7:56 AM PDT on Apr 6, 2016

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SANTA ROSA, CA - FEBRUARY 07: Freshly poured glasses of Russian River Brewing Company Pliny the Younger triple IPA beer sit on a counter at Russian River Brewing Company on February 7, 2014 in Santa Rosa, California. Hundreds of people lined up hours before the opening of Russian River Brewing Co. to taste the 10th annual release of the wildly popular Pliny the Younger triple IPA beer that will only be available on tap from February 7th through February 20th. Craft beer aficionados rank Pliny the Younger as one of the top beers in the world. The craft beer sector of the beverage industry has grown from being a niche market into a fast growing 12 billion dollar business, as global breweries continue to purchase smaller regional craft breweries such this week's purchase of New York's Blue Point Brewing by AB Inbev. (Photo by Justin Sullivan/Getty Images)

San Diego County’s craft beer makers generated $851 million in sales while employing more than 4,500 during 2015, according to the latest annual industry impact update by National University System Institute for Policy Research.

Ballast Point, which was acquired last year by New York-based Constellation Brands in a $1 billion deal, moved up 20 notches from No. 31 on the 2015 list.

National University researchers said local operators of craft breweries and brewpubs – numbering 114 at the end of 2015, but recently passing 120 with more on the way – face newly emerging industry challenges and policy choices.

Those include flattening of local wages, and debates over water usage, land use and housing affordability that could affect the local brewing industry’s long-term competitiveness.

“Industry sales and jobs continue to rise each year in San Diego, but the local marketplace for craft beer is changing,” said Vince Vasquez, a senior policy analyst who authored the National University report. “Regional marketing efforts and consumer education will be critical in identifying ‘craft’ brewers in a new era of industry acquisitions and expansions in San Diego.”